220/132kV substation, transmission lines: NTDC secures Rs 6400 million loan from consortium of banks

In order to induct 956MW power from wind power projects to the system, the National Transmission and Despatch Company Ltd (NTDC) has secured Rs 6400 million loan from consortium of banks (Habib Bank Limited, National Bank of Pakistan & Bank Islami Pakistan Limited).

The financing facility will be utilized for the construction of 220/132 kV substation and allied transmission lines to evacuate clean renewable energy from 19 wind power plants located at Jhimpir wind corridor.

The loan signing ceremony was was attended by Minister for Energy Power Division Omar Ayub Khan, Special Assistant to the Prime Minister Nadeem Babar, Secretary Power Division Irfan Ali, Senior officials of the Power Division and NTDC.

Managing Director NTDC Zafar Abbas and heads of HBL, NBP and Bank Islami signed the Indicative Term Sheet.

The NTDC spokesman said that it is pertinent to note that, NTDC, for the first time has explored the option of raising a loan on its own balance sheet without GOP guarantee. The NTDC in the past has relied on GoP guaranteed loans from the local market. This loan signing would be a precursor for more funding for upcoming transmission line projects.

The spokesman furthered stated that PC-1 cost of the Jhimpir-II project is Rs 10.753 billion and funding required was Rs 6.40 billion. The project will have 19 wind plants connected to it, with a cumulative capacity of around 956MW power will be inducted to the system in two phases. The project will have sufficient capacity to transmit more power in future. To meet the future development in Gharo-Jhimpir wind corridor, the 220 kV grid station will be upgraded to 500kV capacity in coming years.

Munir Azam, Addl Secretary (I) Power Division, Waseem Mukhtar Addl Secretary (II), Zargham Eshaq Khan Joint Secretary, Wajahat Saeed Rana Dy Managing Director NTDC, CFO NTDC Amir Waheed Ahmed and DM Finance Masood Anjum were also present during the ceremony.-PR